Companies who do not look beyond their existing

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companies who do not look beyond their existing supplier base, will have much less chance of ending up with the best supplier base. Volvo Powertrain Corporation (VPT), as a division of Volvo AB, has launched a platform strategy through its new product development activities - called Heavy Duty Engines Program (HDEP)- so as decreases the number of platforms from 18 to 2. Hence, the related supply chain has to be reduced from thousands members to, less than 100 as a first target. Needless to say, VPT strictly needs a procedure, as a rule-of-thumb and in more extent, a precise procedure to dealing with evaluating and selecting suppliers for catching up the reduced supply chain and establishing strategic partnership with the right opted ones out of the present numerous supply base members. VPT’s current supplier evaluation and selection process is on the basis of traditional methodologies, which is needed to develop to embrace other important criteria for strategic partnership member selection and to make a decision which balances both the short and long-term needs of VPT and target suppliers. As it has been found in this effort, much of the previous research in the area of supplier evaluation and selection emphasizes conceptual and empirical decision support models. They may experience one or more shortcomings such as being mathematically too sophisticated, too subjective, requiring too many supporting data, etc. Meanwhile, what practitioners need is a methodology that is simple to use and understand, and yet, produce reasonably accurate results. Strategic partnerships are strategic in nature and involve a commitment over an extended time period, and a sharing of information, risks and rewards of the relationships. As companies become involved in these sorts of partnerships with their suppliers, a new set of supplier selection criteria, equally or even more important as traditional criteria, comes into consideration. The first part of this study tries to recap these criteria and presents an actionable procedure for purchasing practitioners, by finding, assessing and adopting proper M
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Preface 2 methodologies presented through literature. So, the first chapter focuses mainly on exploiting and assessing diverse proposed methodologies, traditionally and recently, in literature. Chapter two presents a brief review of Volvo Business Partnership Program (VBPP) in which, decreasing and tiering the supply chain members, evaluation and selection of suppliers, conducting platform strategy for diesel engines, and other strategic and operational activities happen. The purpose of this chapter is to shed a light on focused spots during several conducted conferences, which have been organized by VPT with suppliers, and its alignment with VBPP whole vision.
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